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Release Date: 11/05/2003
Release Number: 03-697-NEW /BOS 2003-299
Contact Name: Rita Ford
Phone Number: 202.693.8671
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New York, New York - The U.S. Department of
Labor has obtained a consent judgment preventing the former trustee of the
Empire State Messenger Service’s profit sharing plan in New York City
from avoiding his debt to the plan during his personal bankruptcy
proceeding. |
“This
action underscores Labor Department and Labor Secretary Elaine L. Chao’s
commitment to secure the benefits employers promise to their employees,”
said Francis Clisham, director of the New York Regional Office of the
Employee Benefits Security Administration (EBSA), whose office
investigated the case. |
In
1993, the Labor Department obtained a judgment requiring Howard Blum to
pay approximately $300,000 to the Empire State Messenger Service profit
sharing plan. The plan was still owed $35,000 prior to Blum’s
bankruptcy. |
The
judgment resolved a lawsuit alleging he violated the Employee Retirement
Income Security Act (ERISA) by improperly lending most of the plan’s
assets to a real estate venture, failing to secure the loan, and failing
to collect on the loan when it was in default. After Blum declared
bankruptcy in July 2003, the department filed an adversary complaint to
ensure that he would pay any debts owed to the plan and ordered by the
court in the 1993 judgment. |
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The latest judgment, entered in the U.S. Bankruptcy
Court in Las Vegas, Nevada, where Blum relocated, protects the 1993 court
order. Empire State Messenger Service has been defunct since 1993. |
Employers
and workers can reach the New York regional office at 212.607.8600 or
through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans. |
(Chao
v. Howard Blum)
Bankruptcy No. 03-1193 [LBR] |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
